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GM reports third straight sales drop in China in 2020

BEIJING — General Motors' vehicle sales in China fell 6.2% in 2020, as the U.S. automaker suffered a prolonged slowdown in the world's biggest auto market. GM, China's second biggest foreign automaker, delivered 2.9 million vehicles in the country last year, the company said on Wednesday, for a third straight decline in annual sales. But sales have been recovering in the second half of last year, up 12% between July and September and 14% in the final three months. GM has a Shanghai-based joint venture with SAIC Motor, in which the Buick, Chevrolet and Cadillac vehicle brands are made. It also has another Liuzhou-based venture, with SAIC and Guangxi Automobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of its Buick brand grew 4% on the year and Wuling rose 9%, the statement said. Luxury brand Cadillac's sales increased 8%. Sales of GM's more affordable Baojun brand dropped 33% last year, while sales of its mass-market Chevrolet tumbled 30%. GM's delivery of 2.9 million vehicles in China follows 3.09 million vehicles in 2019, 3.65 million vehicles in 2018, and 4.04 million in 2017, for a three-year decrease of 28%.

GM recalls 2022 Cadillac XT5, XT6 and GMC Acadia for suspension issue

General Motors is recalling a relatively small number of 2022 Cadillac and GMC crossovers to address the potential for missing or loose rear suspension hardware that is being blamed on a lapse in quality control at the company's Spring Hill facility. The campaign covers 223 examples of the Cadillac XT5, 159 examples of the Cadillac XT6 and 354 examples of the GMC Acadia. "General Motors has decided that a defect, which relates to motor vehicle safety, exists in certain 2022 model year Cadillac XT5, XT6, and GMC Acadia vehicles," GM said in its defect report. "A fastener in the left-rear suspension toe link in some of these vehicles may not have been fully tightened during suspension assembly. After an assembly process was moved to a new area, error proofing equipment was not initially set up properly, which allowed a window where the operator might miss tightening certain fasteners without the failure being flagged." The issue was discovered by a quality engineer at the Spring Hill facility in March of this year, at which point GM conducted an audit to determine which and how many vehicles may have left the factory with improperly torqued or missing fasteners, narrowing down the recall population to the above 736 vehicles. No incidents associated with the defect have been reported in customer vehicles.  Related video: Recalls Buick Cadillac GM Ownership Safety

PSA's purchase of Opel from GM is expected to be finalized soon

PSA's purchase of the Opel/Vauxhall division from General Motors is expected to be officially announced on Monday, according to The New York Times. PSA, the parent company of European automakers Peugeot and Citroen, will reportedly hold a joint press conference with GM in Paris to announce the deal. GM has worked as part of an alliance with PSA in Europe since 2012. The deal could be a big boon for both companies. For PSA, the addition of Opel and Vauxhall into its fold would catapult the automaker into second place behind Volkswagen for European marketshare, and would allow the company to spend research and development costs across a greater number of vehicles. And GM, which has struggled in recent years to turn a profit with its European division, would be able to focus more squarely on the areas where it's most profitable and to invest in future technologies like automation. But the deal isn't without its potential pitfalls, primarily for PSA. GM hasn't been able to make a success of Opel and Vauxhall, and it's not a sure bet that PSA will, either. What's more, the addition of Opel and Vauxhall doesn't expand PSA's reach any further into new markets, like China or India. The NYT cites data from Ferdinand Dudenhoffer, a professor at the University of Duisburg-Essen in Germany, showing that 70 percent of PSA and Opel business is done in Europe, a market that has been shrinking since 1999. We'll have to wait a few days to see exactly how the deal between PSA and GM will be structured. We're also curious to see how the loss of Opel may affect GM's lineup in the States, especially for Buick, since the company's Regal sedan is based on the European Opel Insignia. In other words, stay tuned. Related Video: